Full Text of SB0475 100th General Assembly
SB0475sam001 100TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 6/28/2017
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| 1 | | AMENDMENT TO SENATE BILL 475
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 475 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Election Code is amended by adding Section | 5 | | 9-50 as follows: | 6 | | (10 ILCS 5/9-50 new) | 7 | | Sec. 9-50. Property tax appeal contributions. It is | 8 | | unlawful for any individual who is engaged in the business of | 9 | | providing legal representation in real estate tax assessment | 10 | | appeals to make campaign contributions of more than $750, in | 11 | | the aggregate, to any political committee established to | 12 | | promote the candidacy of a candidate for township or | 13 | | multi-township assessor, county assessor, county supervisor of | 14 | | assessments, or member of the board of review in any | 15 | | jurisdiction where that individual provides such legal | 16 | | representation. It is unlawful for any candidate, political |
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| 1 | | committee, or other person to knowingly accept or receive any | 2 | | contribution prohibited by this Section. | 3 | | Section 10. The Property Tax Code is amended by changing | 4 | | Sections 1-50 and 17-10 and by adding Sections 4-35 and 8-11 as | 5 | | follows:
| 6 | | (35 ILCS 200/1-50)
| 7 | | Sec. 1-50. Fair cash value. | 8 | | (a) "Fair cash value" means the amount in terms of money | 9 | | that a well-informed buyer is justified in paying and a | 10 | | well-informed seller is justified in accepting for property in | 11 | | an open and competitive market, assuming that the parties are | 12 | | acting without undue compulsion. In determining the fair cash | 13 | | value of any real property which is subject to any special | 14 | | assessment, such value shall not be determined by adding the | 15 | | present value of the special assessment to the sales price. | 16 | | (b) Sales in and of themselves shall not be the sole | 17 | | criteria of fair cash value, but shall be used in connection | 18 | | with cost, income, and other factors, including, but not | 19 | | limited to: | 20 | | (1) the proper classification of lands and | 21 | | improvements; | 22 | | (2) the size thereof; | 23 | | (3) the effect of location on value; | 24 | | (4) depreciation, including physical deterioration or |
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| 1 | | functional, economic, or social obsolescence; | 2 | | (5) cost of reproduction of improvements; | 3 | | (6) productivity, taking into account all restrictions | 4 | | imposed by the State, the federal government, or units of | 5 | | local government, including, but not limited to, | 6 | | restrictions on property rented or leased to low income | 7 | | individuals and families as authorized by Section 42 of the | 8 | | federal Internal Revenue Code; | 9 | | (7) earning capacity as indicated by lease price, by | 10 | | capitalization of net income, or by absorption or sell-out | 11 | | period; | 12 | | (8) rental or reasonable rental values or rental values | 13 | | restricted by the State, the federal government, or a unit | 14 | | of local government, including, but not limited to, | 15 | | restrictions on property rented or leased to low income | 16 | | individuals and families, as authorized by Section 42 of | 17 | | the federal Internal Revenue Code; | 18 | | (9) sale value on open market with due allowance to | 19 | | abnormal inflationary factors influencing such values; | 20 | | (10) restrictions or requirements imposed upon the use | 21 | | of real estate by the State, the federal government, or a | 22 | | unit of local government, including zoning and planning | 23 | | boards or commissions, and including, but not limited to, | 24 | | restrictions or requirements imposed upon the use of real | 25 | | estate rented or leased to low income individuals and | 26 | | families, as authorized by Section 42 of the federal |
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| 1 | | Internal Revenue Code; and | 2 | | (11) comparison with values of other property of known | 3 | | or recognized value; sales ratio studies shall not be used | 4 | | as an appraisal for appraisal purposes. | 5 | | The amount for which a property can be
sold in the due course | 6 | | of business and trade, not under duress, between a
willing | 7 | | buyer and a willing seller.
| 8 | | (Source: P.A. 88-455.)
| 9 | | (35 ILCS 200/4-35 new) | 10 | | Sec. 4-35. Publication of valuation models. Each | 11 | | assessment official, including each township or multi-township | 12 | | assessor, shall, on an annual basis, transmit to the chief | 13 | | county assessment officer valuation models for his or her | 14 | | jurisdiction, including methodologies, assumptions, and | 15 | | property values themselves. The chief county assessment | 16 | | officer shall post that information on his or her office's | 17 | | Internet website. | 18 | | (35 ILCS 200/8-11 new) | 19 | | Sec. 8-11. Department audits. Each year, the Department | 20 | | shall conduct an audit of each county, township, or | 21 | | multi-township assessment office to develop an accurate and | 22 | | credible mass appraisal system. The audit shall examine the | 23 | | following components of each office: | 24 | | (1) each office's organizational plan; each county, |
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| 1 | | township, or multi-township assessment official shall | 2 | | produce for his or her jurisdiction a plan for the current | 3 | | and next assessment cycle, including an organizational | 4 | | chart and budget; | 5 | | (2) independently-validated sales data; | 6 | | (3) detailed parcel information, including, but not | 7 | | limited to: | 8 | | (A) market factors; | 9 | | (B) classification requirements; and | 10 | | (C) use of the property; | 11 | | (4) the valuation model or models used by the assessor; | 12 | | (5) each officer's internal review process; and | 13 | | (6) whether or not the assessor's office is in | 14 | | compliance with the factors set forth in subsections (d), | 15 | | (e), and (f) of Section 17-10. | 16 | | Upon completion of the audit, the Department shall weigh | 17 | | each of the preceding components and shall make public a | 18 | | compliance list, detailing whether counties and townships are | 19 | | substantially compliant, partially compliant, or | 20 | | non-compliant. If a county or township is found to be | 21 | | non-compliant for a period of 6 consecutive years, then the | 22 | | county or township shall be deemed to be persistently | 23 | | non-compliant. If a county or township is persistently | 24 | | non-compliant, then the assessment official shall be removed | 25 | | from office, and the office shall be vacant. The county board, | 26 | | by an affirmative majority vote, shall appoint a replacement |
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| 1 | | assessment official to serve for the remainder of the former | 2 | | assessment official's unexpired term.
| 3 | | (35 ILCS 200/17-10)
| 4 | | Sec. 17-10. Sales ratio studies. | 5 | | (a) The Department shall monitor the
quality of local | 6 | | assessments by designing, preparing and using ratio studies,
| 7 | | and shall use the results as the basis for equalization | 8 | | decisions. In
compiling sales ratio studies, the Department | 9 | | shall exclude from the reported
sales price of any property any | 10 | | amounts included for personal property and,
for sales occurring | 11 | | through December 31, 1999, shall exclude
seller paid points. | 12 | | The Department shall not include in its sales ratio
studies | 13 | | sales of property which have been platted and for which an | 14 | | increase in
the assessed valuation is restricted by Section | 15 | | 10-30.
The Department shall not include in its sales ratio | 16 | | studies the initial sale
of residential property that has been | 17 | | converted to condominium property. The Department shall | 18 | | include compulsory sales occurring on or after January 1, 2011 | 19 | | in its sales ratio studies. The Department shall also consider | 20 | | whether the compulsory sale would otherwise be considered an | 21 | | arm's length transaction, based on existing sales ratio study | 22 | | standards.
| 23 | | (b) When the declaration
required under the Real Estate | 24 | | Transfer Tax Law contains financing information
required under | 25 | | Section 31-25, the Department shall adjust sales prices to
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| 1 | | exclude seller-paid points and shall adjust sales prices to | 2 | | "cash value" when
seller related financing is used that is | 3 | | different than the prevailing cost of
cash. The prevailing cost | 4 | | of cash for sales occurring on or after January 1,
1992 shall | 5 | | be established as the monthly average 30-year fixed Primary | 6 | | Mortgage
Market Survey rate for the North Central Region as | 7 | | published weekly by the
Federal Home Loan Mortgage Corporation, | 8 | | as computed by the Department, or such
other rate as determined | 9 | | by the Department. This rate shall be known as the
survey rate. | 10 | | For sales occurring on or after January 1, 1992, through
| 11 | | December 31, 1999, adjustments in
the prevailing cost of cash | 12 | | shall be made only after the survey rate has been
at or above | 13 | | 13% for 12 consecutive months and will continue until the | 14 | | survey
rate has been below 13% for 12 consecutive months.
For | 15 | | sales occurring on or after January 1, 2000, adjustments for | 16 | | seller paid
points and adjustments in the prevailing cost of | 17 | | cash shall be made only after
the survey rate has been at or | 18 | | above 13% for 12 consecutive months and will
continue until the | 19 | | survey rate has been below 13% for 12 consecutive months. The | 20 | | Department shall make
public its adjustment procedure upon | 21 | | request.
| 22 | | (c) The sales ratio studies shall conform with the most | 23 | | recent standards and statistical measures developed by the | 24 | | International Association
of Assessing Officers. All data used | 25 | | to develop the sales ratio studies shall be made public. | 26 | | (d) The median ratio measure for each township must fall |
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| 1 | | between 0.9 and 1.1. If the median ratio measure does not fall | 2 | | within that range, then the appraisal level shall be found to | 3 | | be out of compliance unless, at a 95% level of confidence, the | 4 | | range estimate overlaps 1. | 5 | | (e) The average deviation of ratios from the median level | 6 | | shall be measured by the coefficient of dispersion. A deviation | 7 | | that does not exceed the following value for each property type | 8 | | shall be considered in compliance: | 9 | | (1) for single family residential, 20; | 10 | | (2) for commercial or industrial property in a county | 11 | | with a population of 500,000 or more, 15; and | 12 | | (3) for commercial or industrial property in a county | 13 | | with a population of less than 500,000, 25. | 14 | | If, at a 95% level of confidence, the range estimate | 15 | | overlaps the maximum, then the appraisal level shall be found | 16 | | to be in compliance. | 17 | | (f) The Department shall also determine the coefficient of | 18 | | the price-related bias for each township, which shall fall | 19 | | between -0.05 and 0.05. If, at a 95% level of confidence, the | 20 | | range estimate falls between -0.01 or 0.01, then the appraisal | 21 | | level shall be found to be in compliance. | 22 | | (g) The sample size for each sales ratio study shall be not | 23 | | less than (i) 30 parcels or (ii) 10% of parcels in each | 24 | | property class within the jurisdiction, whichever is lower. | 25 | | (h) The sales ratio study shall be subjected to a test of | 26 | | distribution such as Shapiro-Wilk, D'Agostino-Pearson K 2 , or |
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| 1 | | Anderson-Darling A 2 . | 2 | | (Source: P.A. 96-1083, eff. 7-16-10.)".
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